Congress and the Obama administration began laying the groundwork last month for an overhaul of the U.S. health care system. The big question: How to pay for it?
Many Democrats want the value of health insurance to be counted as income on employees’ paychecks (thus taxed). This, however, would run up against President Obama’s campaign pledge not to raise taxes on the middle class.
One compromise proposal: Tax the health premiums of people who earn above a certain amount, say $100,000 for individuals and $200,000 for families.